PagSeguro Digital (NYSE:PAGS) lost almost 8% on September 26 following the imposition of a cap on interchange fees of prepaid and debit cards by the Central Bank of Brazil. In addition, the bank has also announced the same settlement period for both types of transactions. Headquartered in Brazil, PagSeguro Digital Ltd. offers financial technology solutions to micro-merchants, small companies, and medium-sized companies. Wall Street’s Take on the News The 0.7% cap on prepaid transactions imposed by the Bank is half of the 1.5% fee currently charged by the card issuers. While acquirers will gain from the lower transaction costs, they may be negatively impacted by the same settlement period.
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